Thread: What do You think about "Do Not Compete" Clauses?

I had to sign one of these at a studio where I took lessons. It stated that I would not teach classes in the vicinity of this studio for 3 years.
Now that I think about it, it kinda makes me mad, because if I were to teach classes, they would be in a totally different style from the style taught at this studio.
I want to hear your opinions. What do you think about clauses such as this, and are they legal?

Laws usually vary by state. I would not consider signing such an agreement. Since you have already signed a contract consider a contract of your own stating no-one else could teach anything you are teaching for 3 years?

I'd take that contract straight to a lawyer. If it is, in fact, somewhat binding, there's probably a limit to what "teaching classes" entails. The other studio's choreographies, style, using their name ...or it may not be enforceable or may not be properly written.

Originally Posted by BELLA_BELLA

I'd take that contract straight to a lawyer. If it is, in fact, somewhat binding, there's probably a limit to what "teaching classes" entails. The other studio's choreographies, style, using their name ...or it may not be enforceable or may not be properly written.

The did not give me a copy of this contract. I can only state what it says.

Well, I honestly don't think much of that. If you've been dancing for a long time, it smacks of the starvation theory (there's not enough to go around, so if you have students, they must have been stolen from me). You should at least get a copy of what you've signed, that's just good business practice. That you didn't get a copy also raises an alarm.

For my *choreography* I ask that students not teach them without my express permission - and it's on all my notes. Anyone who does so, or 'steals' a choreography and performs it for another group, simply dishonors themselves. It's such a small pond, everyone knows what belongs to whom around here.

If my students (who are qualified) want to teach, I'm happy about that! I consider it part of my job as a teacher to help others grow, and if teaching is part of that growing, then I encourage it. I offer them my format notes, or they are welcome to come up with thier own. They are welcome to teach their own choreography also. In fact we are going to set up some seminars for that to happen so the older students can pass on their material to the younger students as everyone develops.

On the positive view, maybe it's a ploy to stop the one class wonders, who take one class and then go 'teach.' But if you're a regular and trusted student, I don't see the point in this.

Best of luck to you!

KS

This isn't at the studio I go to know and out of all studios where I have taken classes, it has only been this one studio that had a contract.

Even if you have been dancing for 20 years, it states that you cannot teach anywhere in the radius of the school for 3 years after you cease to take classes there. I guess they are afraid of someone stealing their teaching style, but that assumes someone would want to use their teaching style.

Has anyone else seen a studio that has a contract like this?

Originally Posted by s1dur1_sab1tu

For my *choreography* I ask that students not teach them without my express permission - and it's on all my notes. Anyone who does so, or 'steals' a choreography and performs it for another group, simply dishonors themselves. It's such a small pond, everyone knows what belongs to whom around here.



KS

I can understand not teaching someone else's choreography, I would never do that. I don't even like to use choreo that I learn in seminars because part of the fun for me is creating.
This school had "set" choreographies for each class, but wouldn't it be sufficient to say that you MAY NOT use the choreographies to teach?

Our studio is currently suing the former AD over breach of contract. He had a non-compete for 50 miles, and he's teaching down the street. Although I think our not-for-profit money could be put to better use, he DID know the terms and could easily have found a studio 51 miles away.

For hired teachers, I've never seen such a contract. MAYBE I can see one year, but not really. For artistic directors or company directors I can see it.

I have never been asked to sign one, and I won't. I will not be deprived of a livelihood because one studio is afraid of me leaving.

You were asked to sign this as a paying student? Interesting--I have never heard of a non-compete clause for students, only for visiting workshop instructors and certain very specific professional contracts. If I were a new student it would be strange, as I can't imagine I would even be thinking of teaching at all. If I were a teacher or advanced/pro-dancer and wanted to take from another instructor, this would be a real shame in terms of offering any continuing education for fellow professionals. I would not be able to ethically sign it. Seems like an odd business choice for the studio. Maybe they were burned in the past...but this seems like overkill for something that was (or would likely be) an isolated incident.

the only thing I can think is that this woman must have been royally burned at some point, and in order to protect herself now she's gone way overboard.

Can you get a copy of it? unfortunately, by requesting a copy you will probably set off alarms with her if she is that paranoid.

Originally Posted by Monica

You were asked to sign this as a paying student? Interesting--I have never heard of a non-compete clause for students, only for visiting workshop instructors and certain very specific professional contracts. If I were a new student it would be strange, as I can't imagine I would even be thinking of teaching at all. If I were a teacher or advanced/pro-dancer and wanted to take from another instructor, this would be a real shame in terms of offering any continuing education for fellow professionals. I would not be able to ethically sign it. Seems like an odd business choice for the studio. Maybe they were burned in the past...but this seems like overkill for something that was (or would likely be) an isolated incident.

Yes, I was a paying student, and at that time had no intention of teaching. For that matter, I was taking classes from more than one teacher and had been at the other teachers school for a long time, so why should this 2nd dance studio dictate what I can and cannot do?

I know of the studio you're talking about; I've heard of this agreement that they make people sign. I don't really understand it...it doesn't make sense at all. I would definitely email her and ask for a copy, especially if you're thinking about teaching.

You do need a copy of the contract, at minimum in order to determine the number of miles the "radius" or "vicinity" you refer to (not mentioned in your posts).

-Devora

sounds like the studio owner lives in a snowglobe.....

Non-compete clauses as a term of employment are common in other industries. The two that come to mind right off the top of my head are the salon/spa industry where stylists come and receive training and build clients within a commissioned situation, and chefs/bakers who learn recipes that have been developed in-house by the owner or head chef.

The situation with the stylist, I think, is a closer situation to a dance teacher than the chef. If you are a stylist working for a salary, the salon owner in entitled to call the clients that come to your chair his/her own. The salon owner is scheduling your appts, advertising the salon, paying your taxes, providing your station, paying for the electricity, water, etc. Lots of people follow their stylist when they move to a new salon, but from a business standpoint that client and their records are the intellectual property of the salon, not the stylist.

If you are an employee of a studio and receiving a salary (whether a percentage or hourly wage) but the administrative duties of advertising, payroll, etc. are being taken care of by the owner then, technically speaking, those are not your clients and it is considered bad form to assume that they are yours just because they took your classes. From the owner's point of view, they are the ones who have done the legwork to build the business. If a teacher who doesn't have a student base comes in and uses the administrative support of the known studio name, advertising efforts, etc. to help build a student base and then tries to leverage that advantage into their own business, it doesn't reflect well on their business ethics from the previous owner's perspective. Therefore, an owner might feel that an non-compete is warranted, especially if they have had a bad experience in the past.

If you are renting space and doing all the administrative work to run your classes, then those are your students and you should be able to open a studio wherever you want -- if it's across the street then may the best teacher and studio owner win... But be ready for some fireworks!

Part II -- I rambled too long!

Similarly, if you are a massage therapist in a chiropractor's office and you make connections with that practitioner's clients, they are still the practitioner's clients. If you ask to have a room in that office where you can give full massages in order to provide a service that is a benefit to those clients and your boss agrees, then it is a win-win. If you just slip your card to those clients and see how many you can send to another office that you run on your days off rather than doing your own advertising and networking....that doesn't reflect as well on you.

I think that in the grand scheme of things, it behooves a studio owner to treat their employees really well and appreciate them in order to give them ample reason to stay and to recommend that their up-and-coming students try to teach within the framework of the established studio rather than having them feel like they could do things better and make more money somewhere else. It's difficult because people don't understand all the work and hours of administrative duties that go on behind the scene to make a studio viable.

There's my $.02 having been an employee and a studio owner both.

Originally Posted by Magidah

Part II -- I rambled too long!

Similarly, if you are a massage therapist in a chiropractor's office and you make connections with that practitioner's clients, they are still the practitioner's clients. If you ask to have a room in that office where you can give full massages in order to provide a service that is a benefit to those clients and your boss agrees, then it is a win-win. If you just slip your card to those clients and see how many you can send to another office that you run on your days off rather than doing your own advertising and networking....that doesn't reflect as well on you.

I think that in the grand scheme of things, it behooves a studio owner to treat their employees really well and appreciate them in order to give them ample reason to stay and to recommend that their up-and-coming students try to teach within the framework of the established studio rather than having them feel like they could do things better and make more money somewhere else. It's difficult because people don't understand all the work and hours of administrative duties that go on behind the scene to make a studio viable.

There's my $.02 having been an employee and a studio owner both.

Yes, I agree with these policies, but I was never employed by this studio. I was paying to be a student. I assume the contract also applies to the teachers, in which case, it would make sense.

Also for the above mentioned post....the radius was 100 miles i think.

I am not living in this state right now so it's not a problem but I was kinda just throwing it out there to see if anyone else had heard of a contract like this...

Thanks for all of the input:)

Non-compete clauses have to be reasonable and in most states they range from 6 mo's to 2 years....not 3!!
Also, the radius for most states is 25 miles....
This contract would not be enforced in court.....the contract would have to be reasonable in geographic scope and duration. There would also have to be consideration (compensation) given for a non competition clause...in otherwords, you would have to be given something in return for not competing (free classes, and incentives) It all depends in what state you are in...some ban them completely...like California, Colorado, Texas, Massachusetts, and others. HOpe this helps!!

Originally Posted by kajmir666

There would also have to be consideration (compensation) given for a non competition clause...in otherwords, you would have to be given something in return for not competing

Well, that makes sense to me.

I can't even imagine what this teacher is thinking, asking her *customers* to sing non-compete clauses! What business does that? Obviously she's had some pretty bad experiences in the past, that's a shame. But this isn't the way to deal with that.

I can't fathom that a state that allows non-compete contractclauses would thinkit appropriate to usesuch clauses to prohibit a CUSTOMER of a business from eventually entering that business. Typically noncompete clauses represent attemptsby EMPLOYERS to preventtheir EMPLOYEES from spinningoff competing businesses.

I thinkthis noncompete clause is weird. Id look for a differnet teacher.

Originally Posted by mysterywoman

I can't fathom that a state that allows non-compete contractclauses would thinkit appropriate to usesuch clauses to prohibit a CUSTOMER of a business from eventually entering that business. Typically noncompete clauses represent attemptsby EMPLOYERS to preventtheir EMPLOYEES from spinningoff competing businesses.

I thinkthis noncompete clause is weird. Id look for a differnet teacher.

Exactly. Universities who offer PhDs don't bar their graduates from teaching within a 100 mile radius. That would be absurd. I have a pretty good feeling that this contract would never hold up in court, but I would refuse to sign and walk away. The contract is probably a good indication of the studio's general attitude toward students--they own you.

Originally Posted by kajmir666

It all depends in what state you are in...some ban them completely...like California, Colorado, Texas, Massachusetts, and others. Hope this helps!!

I'm a native southern CA girl that grew up just 20 mins from down town LA and heard about these things while we lived in Kansas for a few months.

Talk about backwards....a studio director was asked to sign one by one of her "staff" teachers, whose family member was a lawyer. It stated she would not teach in the city this "staff" member was living. Which wasn't a big deal until some poor financial decisions forced her to move in with some friends in that very city.

In very rural areas I can see how a person might be trying to "protect" their industry and future earnings.....but in the big city...stuff like this just doesn't fly.

And the fact that they had you sign it as a student....well that would have set off some alarms for me from the get go.

I'll never sign one.

The only way this would make sense to me is if they are teaching a specific, licensed program- not general info, & it would have to be actually documented exactly what the licensed material included. Even so, this would usually be handled by a licensing document which might include a do not compete clause, but there would be a lot more there. I do this with the prenatal fitness program I teach- If I ever gave up my license or had it withdrawn, I would have to prove that any future prenatal class I teach is substantially different from the licensed program & change the name of my classes, or they could legitimately issue a cease & desist. BUT- this would be impossible if they didn't have a very specifically outlined program that included details on how classes & the program in general is run & what material, exactly, is licensed.

Originally Posted by kajmir666

Non-compete clauses have to be reasonable and in most states they range from 6 mo's to 2 years....not 3!!
Also, the radius for most states is 25 miles....
This contract would not be enforced in court.....the contract would have to be reasonable in geographic scope and duration. There would also have to be consideration (compensation) given for a non competition clause...in otherwords, you would have to be given something in return for not competing (free classes, and incentives) It all depends in what state you are in...some ban them completely...like California, Colorado, Texas, Massachusetts, and others. HOpe this helps!!

Yep, what she said.

Law school 101 - you can't have a valid contract without consideration (compensation). So, being a paying student and not an employee....there's no consideration there (unless, like Kajmir said, they were giving you free classes or something else of value in exchange for singing). Even if you were an employee, this contract sounds so vague (no teaching? of what? in the radius of the school? how far is the radius??), it would likely not be enforceable anyway. But you don't even have to worry about that because without consideration, there can be no contract anyway!

I've never heard of a studio making a STUDENT sign a non-compete. That just smacks of desperation to me, I don't like it.

My first teacher did have us sign an agreement that we wouldn't teach her specific material as it was copyrighted as part of her Masters Thesis. Since she was an Aisha Ali student, I think that some of what she was teaching was brought from the original source, so probably null and void.

And yes, this is the same teacher who, in order to protect her student base (and her wallet) would not inform her students about up coming workshops or events, basically suggesting that she was the only authentic teacher in town. Which, once I got to know my town, was pretty laughable!

{{{HUGS}}}